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Only 2 Days Left To Bank of Hawaii Corporation (NYSE:BOH)’s Ex-Dividend Date, Is It Worth Buying?

Investors who want to cash in on Bank of Hawaii Corporation’s (NYSE:BOH) upcoming dividend of US$0.60 per share have only 2 days left to buy the shares before its ex-dividend date, 30 August 2018, in time for dividends payable on the 17 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Bank of Hawaii’s latest financial data to analyse its dividend attributes.

How well does Bank of Hawaii fit our criteria?

The company currently pays out 46.0% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 44.7%, leading to a dividend yield of around 2.9%. Moreover, EPS should increase to $5.47.

Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of BOH it has increased its DPS from $1.76 to $2.4 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes BOH a true dividend rockstar.

In terms of its peers, Bank of Hawaii generates a yield of 2.9%, which is on the low-side for Banks stocks.

Next Steps:

With this in mind, I definitely rank Bank of Hawaii as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three essential factors you should further research:

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.